'I think the printing fraternity is the best place to find friends for life'

Sagar Java of CH Java Mumbai has been a part of the industry for seven years, only. He recalls "jumping in a freezing lake in the middle of the night in the Swedish forests." He heads a family of 40 and believes that "virgin fibre paper and paperboard is renewable, recyclable and biodegradable making it possibly the most sustainable choice for communication or packaging".

17 Oct 2016 | By PrintWeek India

The paper turnaround in 2016
Stable prices of wood and pulp with a downward bias, improved coal availability and BILT's woes. These, I think are the three reasons which caused the turnaround. BILT’s case was beneficial to other papermakers.

Paper challenge
I think there are three major challenges that we face- serious imports on zero duty from ASEAN countries and dumping of their surplus quantities then the availability of stock-lots at extremely low prices from mills in developed nations due to surplus capacity and finally risk of capital due to printers competing with very low margins and very high credit expectations.

Key paper projects
We feel that all the new entrants are serious players. It will be interesting to see how TNPL progresses as they have previous experience of producing paper and are a well-run (government) company with a good machine and large capacity.

Pain areas for a trader
The major threat is from imports from low cost producers in Asia – mainly Indonesia and China. Bad debts and long credit periods are issues for the merchants than the mills.

Paper tigers in their comfort zone
Honestly, I think it’s the end buyer that needs to get out of their comfort zone. Everyone in the above mentioned chain is reasonably efficient and are forced to be so in the view of tremendous competition.

Message for printers
Reduce unhealthy competition among themselves. This will improve their financial health and also reduce the credit cycles that they are forced to take from the paper merchants thus helping merchants as well.

Popularising paper
I have been doing my bit at personal level so far. A myth definitely exists that use of paper should be restricted since it is made by cutting trees. This is a real belief among young children of today. Corporates such as utilities propound this to reduce sending printed bills and send e mails instead. I have met very young children who refuse to put their thoughts on paper due to this propaganda. They worry that writing on paper will result in trees being cut. This is complete fallacy.

CH Java has a wide basket of packaging boards, container boards, flexible packaging and label papers as well as graphic grades. The partners include ITC PSPD, Zanders, Cham Paper Group, Mondi, Iggesund Paperboard, Sappi and Reflex. ITC grades are the fastest moving.